Beef prices drop, farmers suffer

Written by Barun Monday, 09 January 2012 22:51

Farmers of hanwoo (Korean beef) are losing their fortunes as international grain prices raise feed costs while the selling price of cattle has nosedived. This is largely due to the supply of hanwoo cattle reaching 3.3 million, despite the optimum supply to match demand being 2.6 million cows. Male veal calves are sold for merely 10,000 per head, yet are still hard to sell. However, distribution costs inflate the price 40 percent between the farm and the restaurant, leaving both the farmer and the consumer at a loss. In the face of farmer protests, the government has pledged to only serve Korean beef to soldiers and provide incentives for the slaughter of female cows. Courtesy, The Korea Herald.